As prepaid cards muscle their way into traditional banking, many have added a savings account feature. These FDIC-insured accounts offer some of the highest yields you can find. In fact, some prepaid cards offer savings accounts with rates of 5% APY or more.
These accounts do have some limits. For example, most of these high rate accounts limit the top rate to balances of $5,000 or less. Some also require that the card holder setup direct deposit to the prepaid card in order to qualify for the savings account. For those that meet this requirements, however, the yields are far higher than traditional or even online banks.
You can easily search for prepaid cards with linked savings accounts. Simply go to our prepaid card search page and check the “Savings Account” option under Features.
Prepaid Cards With Savings Accounts
We’ve also listed below some of the better options available today. They all offer a 5% APY savings account on up to $5,000 except as noted.
- MangoMoney (6.00% APY)
- Netspend Prepaid MasterCard
- PayPal Prepaid MasterCard
- Control Prepaid MasterCard
- Brink’s Money Prepaid MasterCard
- Western Union Prepaid MasterCard
- ACE Elite
- Insight Card
- Vision Prepaid (5.65% APY)
What Banks Offer the Prepaid Savings Accounts
Prepaid cards partner with banks to hold funds, including savings accounts. Here’s a breakdown of the banks, all FDIC-insured, that run the savings accounts associated with the above cards.
- Netspend actually uses three banks to manager its savings product–BofI Federal Bank, The Bancorp Bank, and MetaBank®
- MangoMoney is issued by Sunrise Banks, N.A.
- Paypal uses The Bancorp Bank
- Control Prepaid uses MetaBank®
- Ace uses MetaBank®
- Western Union uses MetaBank®
- ACE Elite uses MetaBank®
- Netspend/H-E-B works with BofI Federal.
- Insight uses Republic Bank of Chicago or Axiom Bank®
- Vision uses
As noted above, the high yield applies only to balances up to $5,000. One way around this limit is to open multiple cards. This strategy, however, has limits. Many of these cards are administered by NetSpend, including Ace Elite, Control Prepaid and Western Union. You’ll find a good explanation of using mulitiple accounts here.